CHAPTER 2 BANK RECONCILIATION TECHNICAL KNOWLEDGE ‘To understand the need for a bank reconciliation. ‘To know the reconciling tems affecting the cash in bank per ledger. Toow the reconciling items ofecting the cash in bank, dank catement. ea rena fs bans ‘Tobe ableto prepare bank reconciliation ; he necessary ad » momen fusting entries por bond negathin bank per ledger with the cash in bak Bank deposits ae Omnia "The demand deposit isthe ern asso GE SHEAR Heebuat == |A demand deposi is noninterest bearing, Gumem Ina saving deposit, the Th aa osetia neo A saving depo i nterestbearIn gS Time deposit — ‘These depst ie similar to savin depos in the sede thet interest beating ED — ‘inbeied in an intranet led ‘ro devs may be petit oben on demand, ov ahora cortarn port of ne ‘Scanned with CamScanner,What is a bank reconciliation? tus have 2 backround on itor checking account, Bofore we answer the question, let ‘the matter of opening a demand deposit Incidental of he hg indo sp cng acu iis necessary only for = . ‘When an aozount is opened atthe bank, th 0 that any ‘These, taller ature ean teat the authenticity of a check by comparing the depositors signature on the card with the signature on the check, 1 dhe depositor isa corporation, the bank will request that She irectors pase a resolution authorizing certain officers of the Seperation oe signatories of cheeks and that copy of ths Scene Sd with he bank Let us now illustrate come fundamental transactions affecting the depositor and the bank. Assume that Company X (the depositor) collected P100,000 from a customer in settlement of an account, The collection is deposited at the First Bank ‘The journal entry to record the collection and the subseqitent deposit is: ‘Cash (oreash in bank) “Amounts reosvable ae oan ‘On the books ofthe bank, the journal entry i cash Company “toon wn sr since Ser that Pbtamty SES Hetil tak hoe te ex iy ta tt pk howe he et Oe ee a Tack Legal thor ext ae, ing ence, when the account ofthe depositor is nereaed the same Let us assume further that Company X subsequently issued a chock for P30,000 in payment of an account payable. On the books of Company X, the journal entry urate suo wa smn ‘he jal ney onthe Donk of he bank onpany® sno ar snc 2 oa UB sera but ofits deposit in the bank. ‘This isthe reason the bank debits the account ofthe depositor ‘thereby reducing its lability to the deposit. ‘ous, when the depositors acount is decreased, the same i Gebietes At this point, when balances are extracted, the cash in bank ‘ecount on the depositors book has a balance of P70,000, and ‘the Company X aosount on the book ofthe bank has also a balance 9fP70,000, ‘Scanned with CamScanner,Explanation De a intreenatalens ee “This means tat WHOS BSS ABI, the TERESI in cried or vie versa, ‘The reason for this is that the two accounts cover or reflect the or transactions and the @aimg) oe es ET, For example, checks issued by the depositor are not yet presented for payment to the bank or deposits may have been made after the bank records are sent out tothe depositor. ‘And less frequently, there are items on the bank records which — For example: ‘4, The bank may have charged the depositor’s account with service charges which the depositor may not mow about ‘until a report is recoived from the bank, ', Notes endorsed to the bank for collection have been callected by the bank and eredited tothe depositor’s account is not yet received from the bank by The ih fhe fepsing it brome ncnsary to prepare Bank reconciliation i Js a Statement which brings into ‘The reconciliation is suse the baile provides che depositor with heen ‘A bank statement is a monthly report of the bank to the depositor showing: a The cash balance per bank at the beginning , ‘The deposits made by the depositor and acknowledged the bank The checks drawn by the depositor and paid by the bank 4. ‘The daily cash balance per bank during the month When the Sani alatementis Yeceived) attached thereto are the irate == par ASR Jaan at ‘Scanned with CamScannerReconeiling items comparison Between the cag, CER fro At the end of every more ye bank statement received fry ean ly he line omni Hos ‘memos have the ef of damsasng tie 1, Book reconling items ) Credit memos mk ‘Debit memos ® ©) Errors f ) other name for NSF is DAIF or el 2 Bank esting toms ia atces ha asaae CRATER, — nse ae ‘b) Outstanding checks: eek 3 Bron Aico suntrigaatue ernest countersigned, mutilated checks, conflict between, Credit memos ‘amount in words and amount in figures, Ce © Bankeserbiee eharees ~ These include 4. RGGEHOREPIOBR — This pertains to: TL ee mae — ‘Trea examples eesti are: Deposits in transi '% Notes receivable cllected by bank in favor of the deposit” Does in teanslt snl eee dap ned . Proceeds of ba . Aepoctteg PE loan credited to the account of th Deposits in transit dude: © Mauna. * Calactonaleady orarded ' ie dao an . 3 lady frvarded othe bank fr depo but en aut gated by the banks 2 # Inte tosppear inthe bank satement 5 Undeposite ecletions or those still n the hands ofthe opeitor. In effect, these are cash on hand awaiting ey to the bank or depot * scanned with CamScannerOutstanding checks ose ‘Outstanding checks include: Checks drawn and already given to payees but not yet presented for payment a fet es ean. SD ae cite) eee ees poner Forms of bank reconciliation ‘The following formats may be used in reconciling the book Dblance and the bank balance Sot echas sheet . Under tis mth, ‘The fret method is preferred oer the other two. 46 Proforma reconciliation, Adjusted balance method Beokbnlance ‘id: Credit memos ‘Taal Lem: Debit memoe ‘Adjusted bok balance Banktalanse |Add Deposiain transit x ‘Taal (Les: Outstanding checks BD Adjusted bank balance ovcutr,ertors are reonilne lems of he party which ‘cence ce Te wil be observed the _ Depts in transit are ares added tothe bak blanc and the a ‘Scanned with CamScannerExplanation ‘The foregoing procedures can be explained 28 follows ‘The adjusted balance method means that the book balance ang the bank balance are adjusted toequal the correct cash balance, Credit memos already inereased the bank balance but have no fffect on the book balance because the credit memos are not yet recorded by the. depositor. Consequently, the book balance is understated in relation to the correct cash balance. lence, enedit memos are adied to the book balance Debit memos already decreased the bank balance but have no ‘effect on-the book balanee beeause-the debit memos are not Yo recorded By the depositor. Consequently, the book balance i overstated in relation to the correct cash balance. Hence, debit memos are deducted from the book balance Deposits in transit already increased the book balance but have no effect on the bank balance because the deposits are not yet recorded by the bank. Consequently, the’ bank balance i/understated in elation to te correct cash balance. “Hence, deposite in transit are added to the bank balanee. Outstanding checks already decreased the book balance but have no effect on the bank balance because the checks are not yet paid by the bank, Consequently, the bank balance is overstated in relation to the correct cash balance. ‘Hence, outatanding checks are deducted from the bank balance: Book to bank method as Bt ip re iis Bee Ba bas es \Whon the zeconliaton starts with the bok balance and ends ‘with the bank balance, the uaval ben reconing items are Treated inthe same manner they are tented the “adjusted balance method, thst Io credit memos are added and debt mmomoe are deduited However, with respect to the bank reconciling items the ‘treatment is simply . “Thus, ince the deposit in transit is added tothe bank balan, tis ow deducted from the book balance, and since the outstanding heck ts deducted fromthe bank balance, i s now added to the ‘ook balance. Explanation of reversal rule "The book to bank methor means that the book balances adjusted ‘oequal the bank balance. Deposits in transit already increased the book balance but have no effect on the bank balance because the deposits are not yet recorded by the bank, Consequently, the book balance is overstated in relation to the bank balance, Feence, deposits in transit are deducted from the book balance following the book to bank method. On the other hand, @fetaiding eH0Gks already desreased the ‘book balance but. have no effect on the bank balance because ‘he’checks are not yet paid by the bank. Consequently, the bao ‘is understated in relation to the bank balance. Hence, outstanding checks are added tothe book belance, lowing the book to bank method. ‘Scanned with CamScannerBank to book method rlustration Baska Ee ‘pe cashreords of Company X show th flowing fr the month 2 Dope in trait eee Sion Daitmenoe u nis a casi neceirrs CASH DISBURSEMENTS TES: Oustnting ca et Jan. $000 dan, 6 CheckNo.721 sno Credit memos | i 1B 20,000 7 Check No. 722 10,000, 2B somo a0 Checks 12d 0 aeapeaee aL 40,000 4 Check No. 724 2,000 TO 28 CheckNowras ano at Check Ne 7 ‘The general ledger of the company shows the cash in bank account for January as follows: (Cosh in bank — Piast Bank Jan.3t GR 160,000 31 100,000 ‘The balance of the cash in bankon the depositor’ book is P50,000., Explanation of reversal rule ‘Scanned with CamScannerBank statement "The following is the bank statement for January reeived from ‘he First Banke dua ransrnan coreg ae Date GheckNo, Withdrawals Deposit Balance sane cao e000 oe ay 55000, re rc) $5000 a s) 71.000 it soo 4000, nom 2,000 45.0 = soon aa00 2% iso00eM S000, x * socoet 5000 i socose 4.000 (Cale: CM Credit mene DM=Debitmemo S$0- Service charge RT-Retarned chece ‘The following data are gathered in'connection with the CM and DM appearing on the bank statement: ‘a. The CM of P15,000 on January 26 represents proceeds of note collected by the bank in fevor ofthe compan. 1b. ‘The RT of P5,000 represents check of customer deposited previously but retuned by the bank bocause of "no sufficient fund” oF NSF. 52 General procedures in preparing the reconciliation, ‘a. Determine the balance per book and the balance per Yank. ‘As mentioned earlier, the cash in bank account on the book of the depositor has a debit balance of P5000, ‘The bank balance is shown on the bank statement as the final itom, P84,000, b, ‘Trace the cash receipts to the bank statement to ascertain vrhetherthete ate dopsts not yet acknowledged bythe baal In the illustrative problem, the cash receipt of P40,000 fon January 31 does not appear in the bank statement, ‘This represents Trace the checks issued tothe bank statement to ascertain ‘whether there are checks not yet presented for payment. Im the illustrative problem, Check Nos. 726 for P37,000 and 726 f arin the bank statement, ‘These are ‘Tho bank statement should be examined to determine whe here S cant ‘recorded by the depositor. _ In the illustrative problem there is CM of P15,000 and DM for returned check of P5,000 and service charge of i,000, Watch out for errors. Again, errors are reconciling items of the party which committed them, Inthe illustrative problem, there are no errors committed. 53 ‘Scanned with CamScanner,Adjusted balance method Balance per ook, ‘dd Note ceca by bank 0 ES yor mera nd att ee Dato a See ae TS meting ce ce! cee f xi ‘Check No. 726 ae. on Adjusted bank balance — Preparation of adjusting entries ‘The adjustments are necessary to bring the cash in bank balance to its correct balance for statement presentation purposes. Cashin bank 18,000 ‘Noteerecsoable 15,000 . ‘To record the NSF customer check: Acsounte recive ‘Cashin beni ee ta ‘Bank service charge 1.000 ‘Cashin bane ae, SES oy Book to bank method company x Ban Reconelliat ‘January pe book 0.000 ae ‘Notecollected 115,000 Outstanding checks No.725 37,000 No.726 281000 65,000 _80,000, ‘Toad 130,000 Lose: NSF check 5,000 Service charge 11000 Depositin transit 40,000 _46,000 Balance per bank 84.000 Bank to book method COMPANY x Bank Reconciliation ‘January 31 Balance per bank 84,000 ‘Add: Deposit in transit NSP check Service charge 46,000 Teal 130,000 Less: Outstanding checks: a No.728 No.726 [Note collected by bank Balance per book ‘Scanned with CamScanner,‘Some errors and their correction For example, tho ction fom cuxtamer which is depot ‘amounts fo 10,000 bat rsard inthe bok only as P,000, ‘There isan understatement ofcash rept of P00. The exer ‘is added othe book balance and adjusted a flows: ‘Conn bank 8,000 “Accounts receivable 9.000 ‘Understatement of checks drawn by depositor. For example, « check in payment of account payable “amounting to P2000 ie recorded in the book as P2,000 ‘There is an understatement of cash disbursement and a ‘consequent overstatement of took balance in the amount of 18,000, The error is dedvcted from the book balance and adjusted, os fllows: Accouata payable 18.000 ‘Cash bank 18,000 ‘This is a deduction from the bank balance because it ‘erroneously inereased the account balance ofthe depositor in th bank @igpsmembtmemmmmmay te book of toe Aepositor. ‘This ie an addition to the bank balance because it erroneously deceased the sunt balan ofthe epost 2G bot Canim 2 ‘book of the QUESTIONS 1. Boplain the thre kinds of bank depts, 2 What i a bank roconlinton? 5. What fs a bank statement? 4, What are credit memo? 5. What are debit memos? 6 What are deposits in transit? 1. What are oustanding checks? {8 Define a certified check, 9.What is the treatment of certified check for bank reconciliation purposes? 10, Explain the thrce forms of bank reconelaton. 1 ‘Scanned with CamScannerPROBLEMS Problem 2-1 (IAA) [Apathy Company provided the fllowing information: Apathy Campany Date Check No. Withdrawal Deposits Balance Dees 106000 100,000 18 108 11,000 0.000 2 01 3000 ‘35.000 2 106, 5000 60,000 2 sao 110000, 2 10000 120.000 2 109 49000 ‘0,000 2 at 9900 110,000 1 Servioecharge DM 2.000 108.00 FIRST BANK Dee. 1 Deposit 100000 | Dee. 4 Chock No.101 5,000 ‘21 Deposit 50,000 2 Depabt 10000, 31 Depast 80,00 6 Check No. 102 15,000, 18 Check No. 103 40,000 8 Check No. 104 10,000 10 Check No 105 30,000 1M CheskNo. 108 25,000 28 Check No. 107 50,000 "The credit made by the bank on December 29 repreeents the proceeds of a note recived from a customer which was given ‘ the bank for collection by the entity on December 26. Required: 1. Prepare a bank reconciliation using adjusted balance method. 1b. Prepare adjus ing entries. Problem 2-2 CAA) rnaible Company provided the fallow Sch inbonk maintained with Scned Rages tf he SECOND BANK Dow | Baianse 100000. | Dee. 1 Checkin Fr 6 Depoat a m 1 Deposit é i 24 Depot » tm 81 Deposit x ns 18 7 a m7 ‘The following bank statement was received from the Second Bank by Sensible Company. Date Chocks Deposits Balance Dee 1 Balance "000 Check No, 708, 1 m 4 m é cs 2 ™ 2 76 uM 1082, 000 GELG0R 23 NSP check geo 43000m 28 Service charge ‘5.000 59 ‘Scanned with CamScanner,Other information 1. Sensible Company reconciled its bank balance on November 30'with two cheeks, No. 768 for P1000 ang No 70 for P2000 outstanding. 2 Check No. 1042 was drawn by Sensitive Company. ‘The bank charged it in error to the account of Sensible Company. 18, Check No.776 was correctly drawn for P52,000 in payment of account, ‘The amount P25,000 was entered in the books of original entry 4. The bank credit on December 28 represents the proceeds ‘of a P50,000 note, leas a collection fee of PS,000 collected by the bank and credited to the account. '5. The NSF check was received from ¢ customer in payment of account. Required: 1 Prepare a bank reconciliation statement on December 31 », Prepare adjusting entries on December 31 Problem 2-8 (IAA) unthous Company provided th fllowi Xetiamunry 31 ofthe current yea 7 DE rsmciaton ‘Bankbalance 2 at — eet rs Boome ane ee ei ee if rae os ce receipts cash are deposited in the bank cz. ‘alement forthe month of Febrity is presented teow, ‘THIRD BANK Deposit Daw alana Balancofrwarded Jan. 3L 00.000 0.0 20000 oecoon ‘ts00 000 2800000 2300000 300.000 ‘4300 000 20.000 18.000 708.00 ‘3258.0 Maturity value ofthe note ity valu ofthe Credittoyouracsount 6 ‘Scanned with CamScannerfrom the cash journals: ‘The following data were taken f ot ‘Xanthous Company: ju Disbursement Journal .ceipt Journal hosp ‘Cash Receipt No, Credit Cash, Date ut s mB is us 120 a 12 a 12 2 123 “ wt 125 ‘Required: a. Prepare bank reconciliation on February 28, showing the book balances before and after adjustment. Prepare journal entries to reeord the adjustments that are indicated by the bank reconciliation. 6 Problem 2-4 (IAA) ‘Chivalry Company prepared the following ban fe on March 31: ig bank reconciliation Book balance ‘ds Mare 31 doposit Collection nate Intereston note Total oes: Cavalry Companys deposit to ‘account 1.100.000 5000, 1.105000 Bank service charge Adjusted boolebalance ‘Bank belance ‘Adds Error on check No.178 ‘Tal eas: Prosuthorized payment for Tightand water NSP check Outstanding checks Adjusted bank balance (CERNE made for the proper amount of 348000 ‘in payment of account. However the check was entered in the cash disbursements journal as P294,000. Chivalry Company authorized the bank to o ny authorize stomata slight and water bila ay submited ecto the ba Required: % Prepare a corrected bank reoneiliation b Proparo adjusting entries on March 31 ** Scanned with CamScannerProblem 2-5 (AA) Zodine Company provided the fllowing information Stistandang checks a of Api. 90 hgh Ne, 1599hed been cert ae eae el a ce _Aprleedit nema for not calleted "hy benkin he neme of Zone Compacy Us deposed elections Balaneeperbani Apel 30 Require Prepare a bank reconciliation on April 30 following the book to bank approach and prepare adjusting entries Problem 26 (IAA) Radiant Company provided the following date for the month of January Belance perbankctatamen, January 3 $500,000 ‘530,000 50,000 60,000 5.000 00,000 "potdad by the depositor ae ‘The depenor eee oma aneatyin a ‘taboo ort chock drown in payment sanaeotnt payable 125000 Required: ‘Compute the balance in the cash accou . tnd prepare adjusting entien "9! before correction 64 Problem 2-7 (IAA) Racor Copan provided the allowing infomation forthe lance frbank atement err inne er cash book enn Sutctanding checks “008 Deposeineonst ‘5.000 chan 0.000 Presents of bank oan, Deceber Slncounte for months at 12%, not {reurdedon company books 10000 Customers check charged bacby bak Tprabeencof counter sgnatre 0.00 Depotof 100000 err recoded by bankas 10,000 heck ofRaneid Company chard ty bank gana Rancor Company stunt 160,000 ‘cstamer's nae collected by bankin favor ofRancor Company, Face 0000 Interest, "tooo ‘etl “40,000 Cation fo 5000435000 Erronoous debit momo of Decomber 28, ‘charge company's acount with ‘Sculementofbentloan 200,000 DepowitofRancid Company credited toRancoraczunt 300,000 Required: ‘Prepare a bank reconciliation using the adjusted balance approach. . Prepare adjusting eritries on December 81 6s ‘Scanned with CamScanner,‘Problem 2-8 (IAA) ‘Alpha Company provided the fllowing information for the tnonth of Deceber: sec ont as ane alice teres ace en as (Checkof Aha Comapanyinparment ef ‘anaocunt payable had been ented bythe deport as 20,000, The caret smouneie 200,000 ‘Tholedger account fr eah was the only aah account kept by to entity Teincluded a poty cash acount comprised of the lowing tem Curren and coin 44000 Supplies 20 ‘Transportation 000 Postage (000 10,000 Deposit of Omega Compeny ceitad by ‘bank othe acrount ef Alba Company sao00 DepasitefDesomber27 omitted rombankatatement 180,000 Outetanding checks ane Required: ‘4 Propare bank reconciliation on! December 31, ', Prepare one journal entry oly necessary to jut the cash problem 2-9 0AA) See peicter eer ae = ah 4 a ora oe 7 oe = oa = a 7 23 2 En cd Sanleceunceen fe ‘The banketatementchowed the allowing charges: a. Service charge for August 000 NSP check recuved from acustomer 86,00 ‘The cashior bookkeeper hed misappropriated P30,000 and an ditional P10,000 by charging sales discounts and crediting fsecounte receivable ‘Tho stub for check number 765 and the invoice relating thereto show that it was for 50,000. ‘The check was recorded incorrectly in the cash disbursements journal as P70,000. The cheek was drawn in paymont of an Secount payable Payment has been stopped on check number 555 which was flaws in payment of an account payable The payee eannst be Required: © Prepare a bank reconciliation on August 31 using the ‘djusted balance method. Prepare adjusting entries to correct the cash in bank account ‘on August 31, 67 ‘Scanned with CamScannerProblem 2-10 (AICPA Adapted) 1 month of A In preparing the bank recosiatin forthe month of Auguy, ‘Apex Company provided the fallowing information: Balan per bank statement Depostia rant. ‘Return of customer chock forint fund Outstanding cheske Bank ecrice charge or August ‘What isthe adjusted cash in bank? ‘1,855,000 1. 1.795,000 ©. 1,785,000 4. 1,755,000 Problem 2-11 (IAA) Core Company’ provided the following data for the purpose ‘of reconciling the eash balance por boak with the cash balance per bank statement on December 31: Balance perbook 30.000 ‘Balance por bank statement 2.00.00 Outstanding checks, cling certifi check of P100,000 50.000 Deposit in transit. 200000 Desomber NSP check, of which PS,000 had boon redepostd and cletredon December 27 160.000 Broneotsereit to Cores count repreenting preeosofloa granted to ancter company 00,000 Proceeds af otecollacte by bank far Core, pet fev charge of P20,000 ‘90000 ‘What amount should be reported as cash in bank at year" end? ‘1,500,000 1,400,000 1,800,000 1,450,000 problem 2-12 (AICPA. Adapted) pany tone 3 ae yell atioConh teat ea ere et am aes 8 Outstanding checks pt \What is the unadjusted cash in bank balance per book? ‘4 $550,000 ‘360,000 ©. $610,000 4. 3655,000 Problem 2-13 (AICPA Adapted) ‘Able Company received the bank statement fr the month of March. However, the closing balance of the account was ‘unteadable Attempts to contact the bank after office hours did not cure the desired information February 28 bok balance 1.460000 Notecllectd by bank ‘eao00 Interest earned on note 1.000 NSP check ofeustomer s3g000| Bank orvce charge on NSF chece 2.00 | Othortaniscrvce charge mech Outatanding checks 2.000 Deposit of Fetruary 28 placed in night depositary 5,000 (Check inued by Ae Company chargedtoAble'eaceunt 2000, What is the cash balance per bank statement? &. 1,435,000 &. 41530;000 & 1,340,000 & 1,350,000 ‘Scanned with CamScannerProblem 2-14 (IAA) pon commny eid yeh Gagan cent fata Seer kee eter! ee gametes ee er check for P35,000 payable to ben deposited and had not been sank statement for the month fing information: ‘The entity found a custome the entity that had not yet recorded. ‘The general ledger showed a bank account balance of ‘P 920,000. ‘What amount should be reported as adjusted cash in bank ‘on April 307 a. 900,000, 865,000, e. 930,000, 4. 965,000, Problem 2-15 (IAA) ‘Sapphire Company provided the following information for the month of December: Balance per banlestatement December i 2,500,000 Bank eoric charge or December 12000 Inwresspaiity bank oSapphire Company for December _ 10000 Deporte made but not yet recorded bythe bank 350,000, (Checks written but not yet recorded by the bank 30,000 ‘The entity discovered that it hed drawn and erroneous teeorded a check fr P46,000 that should have been record for P5400. ‘What is the cash balance per ledger on December $12 ‘a. 2,500,000 &. 2.520.000 240,000 4 2'800,000 0 problem 2-16 (IAA) ry Company kept al cash na checking scant Atvernon of the acnuntng records en hast satment canara of Sue Teveaied the flewing morons ‘+ The eash balance per book on June 20 is P8,600,000. 4+ deposit ofP1,000,000 that was placed inthe bank's night {apucitory on June 30 does not appear on the benk statement, + The bank statement shows on June 90, the bank collected note for Adversary Company and credited the proceeds ‘f P960,000 to the entity's account. + Checks outstanding on June 20 amount to P300,000, + Adversary Company discovered that a check written in ‘June for P200,000 in payment of an account payable had ‘been recorded in the entity's records as P20,000 + Included with the June benk statement was NSP check for P250,000 that Adversary Company had received from ‘customer on June 26 ‘The bank statement shows P20.000 service charge for 1. What amount shouldbe reported as cash in hank on June 8. 9,180,000 . 9,360,000 9,000,000 4. 3,800,000 ‘What is the net adjustment to cash in bank on June 30? & Net debit P950,000 Net eredit P450,000 & Net debit» 500,000 Net debit 860,000, ~ Scanned with CamScannerProblem 217 (AA) ‘Timex Company provided the folowing ‘cash transactions and bank Cash balance per ledger Cash balanoe per bank statement ‘Debit momo for duly service charge ‘Deposit of duly 81 not recorded by ben! ‘August 1 ‘Outstanding checks, including certified check ‘of P50,000 Proceeds of bank loan not recorded in ledger Proceeds from customer note, face P400,000, tallected hy bank, collection feof P5,000 ‘A creditor check had been entered in the book “is P20,000 and was erzoneously deducted by: the bank at ‘A-customer check was returned by bank ‘marked DALF Correct cash balance 3 until 1. What is the cash balance per ledger? 2.120.000 {055,000 2,555,000 2,065,000 2. What is the cosh balance per bank statement? ‘8. 3,700,000 %, 3.070.000 8,050,000 4. 2370,000 2 dota relating 0 the mS oun forthe month of July 5,000, 450,000 750,000 500,000 436,000 problem 2-18 (AICPA Adapted) * jane Company Provided following inforination at month‘nds eager best lee Sra ntact toe rie : “ga ececaty ind ty bak odacsacice aL geen edn le cect Se ee rec ne Speen bere ae Bente rene tet Sees He ee ae seine drt ities a len ie 1. What is the odjusted cash in bank at month-end? 17,750,000 7,900,000 8,050,000 "7,850,000 2 What is the month-end? 17,070,000 7,220,000 7,270,000 7/780,000 tunadjusted cash in bank per ledger at 8. What total amount of cash should be réported as eurrent 8,700,000 9,700,000 8,020,000 8,850,000 18 ‘Scanned with CamScanner